The following data for Center Pointe Co. relate to the payroll for the week ende

Question

The following data for Center Pointe Co. relate to the payroll for the week ended December 7, 2008: Hours Hourly Weekly Federal Salary Income Tax U.S.Savings Bonds $28.00 22.00 $354.20 $15. 18.00 $2 150.00 19 20 $2,150.00 537.50 176.40 108.00 224.44 108.80 242.00 43.20 70. 10. 46. 45, 40. 15.00 22.50 16.00 1,100.00 12.00 15. Employees C and H are office staff, and all of the other employees are sales per- sonnel. All sales personnel are paid 1/2 times the regular rate for all hours in ex- cess of 40 hours per week. The social security tax rate is 6.0% on the first $100,000 of each employee's annual earnings, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to be used is No. 981. Instructions 1. Prepare a payroll register for College Publishing Co. for the week ended Decem- ber 7, 2006, oN THE SHEET PROUDED. 2. Jounalize the entry to record the payroll for the week.

Explanation / Answer

As the cumulative earnings upto the previous pay period is not provided, it is assumed that all the current earnings are subject FICA taxes.

Employee Hourly Rate Hours worked Weekyl Salary Withholdings Employee Net pay Normal Overtime Total FICA - Social Security FICA - Medicare Federal income Tax U.S.Savings Bonds A 28 50 1120.00 420.00 1540.00 92.40 23.10 354.20 15.00 1055.30 B 22 42 880.00 66.00 946.00 56.76 14.19 189.20 685.85 C 2150.00 129.00 32.25 537.50 70.00 1381.25 D 18 46 720.00 162.00 882.00 52.92 13.23 176.40 10.00 629.45 E 15 40 600.00 600.00 36.00 9.00 108.00 447.00 F 22.5 45 900.00 168.75 1068.75 64.13 16.03 224.44 20.00 744.15 G 16 40 640.00 640.00 38.40 9.60 108.80 25.00 458.20 H 1100.00 66.00 16.50 242.00 775.50 12 30 360.00 360.00 21.60 5.40 43.20 15.00 274.80 Total 5220.00 816.75 9286.75 557.21 139.30 1983.74 155.00 6451.50

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